§ 13. Sir G. Nabarroasked the Chancellor of the Exchequer having regard to the level of home market sales of motorcars, what proposals he will now make to stimulate sales and keep down export prices for motorcars.
§ Mr. Maurice MacmillanMy right hon. Friend's recent measures should help 834 to restore confidence to the whole of industry, including the motor industry. I do not think further measures are necessary at present. Home sales of motor cars have shown a significant improvement over last year.
§ Sir G. NabarroDid not home sales of motor cars over the first eight months of this year show a decline of 92,000 compared with the equivalent period of the year before, which was in itself a very bad year? Are we to continue for ever the draconian measures announced in 1968 as the accompaniment to the devaluation of sterling?
§ Mr. MacmillanLittle Neddy's forecast, agreed with the industry and the Government, shows that new registrations are getting very near the original required total set by the Little Neddy, and to this extent the outcome for this year should be reasonably satisfactory. There is also the question of penetration by foreign imports of the motor car industry home market, caused, as the hon. Gentleman knows, by many divergent factors, some of which are under the motor car industry's control. This is showing signs of lessening, leaving a larger share of the home market to the home producers if they can meet it.
Mr. Bob BrownIs not the Chief Secretary concerned that the recently increased petrol prices will have a further regressive effect, and will he not consider an overall reduction in vehicle excise duty? Will he also give consideration to a penal increase in excise duty on each car above two owned by any one individual?
§ Mr. MacmillanI am not sure that that degree of selectivity would be accepted on either side of the House. As for the other measures suggested, I am afraid the hon. Gentleman will have to await my right hon. Friend's Budget judgment later in the life of this Parliament.